E-commerce becomes to a more sharper competition

The e-commerce revolution has upended brick-and-mortar conventions as companies explore better ways to pull products to consumers, not just retailers, faster. Retail and wholesale channels are converging.

Production companies and 3PL providers are reconsidering infrastructure design and warehouse processes as they lay new foundations for the future of fulfilment operations. Setting up a web shop is one thing; finding, preparing, and moving the product, and working with parcel carriers to ensure shipments are delivered on time is an entirely different challenge. Delivery next day with cut-off times in the evening are becoming the new standard.

The speed-to-market demands associated with e-commerce create some big challenges. Think about Web shops that are marketing short-term deals on select products with limited supply. In some cases, daily Web shop deals are even multiple SKUs of the same product. That means combining the complexity of a pick-and-pack operation with expedited shipping.

Better Use of Warehouse Infrastructure Key to Distribution Efficiency

Companies often put away inventory without considering how that position impacts downstream processes. Without directed putaway, decisions are left up to the operator, or the use of a traditional zone structure. Warehouse real estate demands a more common-sense approach to visualizing inventory turns within the facility.

In most warehouse operations, the picking process is more time/labour consuming than putaway. Warehouses need to optimize slotting to ensure pallet positions and storage profiles match the flow of goods within a specific facility. Traditional zone picking and putaway conventions do little to increase speed or efficiency within a facility.

Every facility has storage areas that are more accessible than others; warehouse positions can be viewed with left-right, front-back, and high-low dimensions. The front face is completely accessible, the other sides less so. Ground-level positions on the front face near the start have the highest accessibility. High positions in the back at the left and right extremes are the least accessible.

For most companies, a few SKUs make up the majority of picks. Fast movers should be most accessible, while slow-moving items should reside in the back of the warehouse where they’re out of the way. So keep the right goods in the right positions for faster picking cycles of fast movers. Strategic reslotting and even dynamic reslotting is key! Picking can make up to 70 % of warehouse labor tasks, so that savings is a big deal.

Simplify Operations With Smart Automation

It is fully clear that industry needs distribution infrastructures with new defined capabilities.

Stacker crane handling plastic crates

Enabling for operational simplicity by designing systems and warehouse architecture that assure higher operator support and better safety conditions, will support the redefined requirements on operations efficiency, order accuracy and delivery times. That is where automation comes in, such as WMS-controlled stacker crane solutions combined with semi-automatic Goods-To-Person picking concepts. Further advantages will be found in better use of warehouse space and decreased energy consumption.

These productivity improvements and cost reductions are the two major benefits from investments in warehouse automation. They surely help to hit the expected ROI in the Food & Beverage industry, too.

To be continued.